The Maldives, a low-lying atoll nation in the Indian Ocean, highly vulnerable to climate change impacts such as rising sea levels, has initiated the construction of the artificial island of Hulhumalé as a climate change adaptation measure. The artificial island of Hulhumalé is being built on a reclaimed land area of 400 ha. It is essentially constructed as an expansion of Malé, the capital city of the Maldives. Hulhumalé is also designed to be resilient to the effects of sea-level rise, with an average elevation of 2 m. It is designed as a fusion of nature and urban life, meant to attract many domestic migrants to relocate there. This chapter evaluates the socio-economic and environmental aspects of Hulhumalé’s development by analyzing residents’ perspectives on living conditions and migration patterns. Additionally, it explores the role of the Housing Development Corporation (HDC) in orchestrating the island’s expansion and the challenges associated with financing, housing affordability, and environmental sustainability. This chapter also underscores the need for comprehensive approaches to climate change adaptation, highlighting the importance of sustainable infrastructure development, inclusive housing policies, and mental health considerations in atoll nations’ resilience-building efforts. Hulhumalé has the potential to serve as a model for other atoll countries facing similar challenges due to climate change. However, and as with other artificial island projects, further surveys and discussions are necessary on such issues like the large construction cost and international debt, housing cost and rents for vulnerable people, mental health issues of migrants, and the overall environmental impact of the construction.